Spurs Summer Transfer Window Day 50
A warm welcome. We'll start today with how transfer fees are recorded for accountancy purposes.
Now I have explained this before but good old Swiss Ramble (the Swiss-based banker) can explain it far better than I.
If you buy a player, the transfer fee goes down in the accounts over the term of his initial contract.
That means his transfer fee divided by the number of years of his initial contract, usually 5 years. This is called player amortisation.
So, a £30m signing on a 5-year contract works out at £6m per year.
30 divided by 5 = 6
The players book value reduces by £6m per year as you can see in the graphic above from Swiss Ramble.
You buy a player for £30m and 3 years later his 'book value' his accounts value is £12m.
3 years x £6m = £18m and £30m - £18m = £12m.
Therefore to lose no money 'on the books' he can be sold for £12m, his accountancy value, but if he were to be sold for £30m, then that would be considered a £18m profit in the accounts.
£30m - £12m (accounts value) = £18m
You can use this calculation to work out what Giovanni Lo Celso and Tanguy Ndombele can be sold for.
Ndombele cost £54m x 5 years = £10.8m per year.
He has been here 3 years, so £32.4m
£54m - £32.4m = £21.6m
So accountancy wise, as long as we get £21.6m for him we are not losing money.
All his bonuses will not be payable as he will not have hit the targets and there are wages to consider in a bigger picture but it gives you an idea of how we have come to the figures we have for each player.
Giovanni Lo Celso cost £28.8m but lets add in his loan fee of £14.4m, a total of £43.2m over 5 years.
£43.2m divided by 5 years = £8.64m
£8.64m x 3 (years he has been at Spurs) = £25.92m
£43.2m - £25.92m = £17.28m
How much are Tottenham asking for Giovanni Lo Celso, £20m.
Fiorentina are asking to pay £15m as an option, we want a permanent deal at £17m basically.
While fans see this as a loss, the accounts do not.
Indeed, anything over £17.28m would be seen as an accountancy profit and that difference would immediately go down in the books as a profit.
I'm no accountancy expert but it is a different world than a fans world thus the clubs operate in a different way to fans perception of how they should be.
Spurs vs Roma
"Seven Israel-based members of our family will be at Sammy Ofer on Saturday. Because, in our household, Ralph’s passion for British soccer has an abiding and very personal dimension." [Sue Surkes]
A remarkable story from Sue Surkes published in the Times of India that you should all read.
How Tottenham helped a Jew escape Germany and Hitler and thus why our game in Israel has more meaning for many.
We all have different stories of how we became Tottenham fans, this one through adversity and the kindness of Spurs and England left-back Bert Sproston.
The chant "There is only one Bert Sproston" should ring around the ground. It would make for a very touching moment for some.
From Italy:
After Tuesday's crowds, yesterday Dybala made his debut for Roma in the desert of Trigoria, in a closed-door test, so Joya's debut remained hidden from most people.
On Thursday there was a morning training session and then the squad departed for Tel Aviv, where the Giallorossi will be facing Premier League side Tottenham Hotspur on Saturday.
Spurs Transfer News
The former sporting director, Gianluca Nani, who is currently without a post, spoke to Radio FirenzeViola and he indicates Giovanni Lo Celso will end up in Italy with Fiorentina.
"Lo Celso has great quality, he can play even further ahead. It depends on how he wants to use Italian, if the rumours I hear are true."Good footballers there is never the problem of where to make them play and, if Fiorentina aim it, I think it is a well-considered and right choice given the great work of the management so far."He is out of Tottenham's project, if Viola will take him. he will make a big purchase, then the tactical evaluations are up to the management".
Weston McKennie
Paul Pogba's knee injury complicates the possible sale of American midfielder Weston McKennie this transfer window.
The 23-year-old is a target of Paratici and Conte but Juventus head coach Massimiliano Allegri has blocked the move and all negotiations have been frozen.
Joe Rodon
Proposed to Roma, but without finding positive feedback, Joe Rodon's future could still lie in Italy.
According to reports from Sampnews24, Sampdoria are interested in the Welsh defender.
Sampdoria have already spoken with Fabio Paratici and a dialogues continues. The Italians are looking for a season-long loan deal.
Ligue 1 side Rennes are also in discussions about taking the 24-year-old (25 next June) on loan and potentially a purchase option for €20m (£16.74m).
Fulham have had further discussions too.
Richarlison
Filippo Giraldi spent 8 years at Watford, first as chief scout and then as sports director. He spoke to TMW about Richarlison, whom he brought to Watford and sold to Everton.
"I was struck by his athleticism, his ability to hold on to shots. The more you hit him, the more he stands and perfect for Conte."He's tenacious, has character. He combines strength with determination, he's strong and perfect for Conte"
Sergio Reguilón
Juventus have made enquiries about Spanish left-back Sergio Reguilón and they have spoken informally to hia agents to sound them out over whether he would be interested in such a move and what the financials might be.
COYS
I'll finish today with a pat on my back.
A good idea for a post but it may take a considerable amount of time to research.
I'll give a very brief answer tomorrow in the opening Spurs Chat section.
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